Christmas Compliance Alert
Stay Penalty-Free This Christmas: Your Shutdown Compliance Guide
Posted on October 31 , 2025 by The HR Bridge Compliance TeamChristmas is approaching, and many Australian business owners are planning a festive shutdown. However, closing without a clear, documented policy can lead to significant fines and compliance issues under Fair Work regulations.
Fair Work mandates that businesses provide a written Christmas shutdown policy and proper notice to all employees. Non-compliance can result in severe penalties, impacting your operations. Protect your Australian business this festive season by preparing a documented closure plan in advance.
Why 28 Days Written Notice is Essential for Business Shutdowns
For businesses operating under a modern award, it's mandatory to provide employees with at least 28 days written notice before any scheduled shutdown. Compliance ensures legal protection under Fair Work regulations while keeping your workforce informed and prepared.
Important Compliance Checklist
- Issue your shutdown notice at least 28 days in advance, e.g., for a December 23 closure, notify by November 25.
- All notices must be in writing. Emails, letters, or formal documents are valid; verbal warnings are not compliant.
- Ensure every employee, including recent hires, receives individual written notice to remain legally compliant.
Never assume your team knows about a scheduled shutdown without proper notice. Each year requires new documentation to stay compliant and avoid legal risks.
Fair Work Requirements: Creating Written Shutdown Policies for ComplianceFair Work Australia does not accept informal shutdown arrangements. Your business must have well-documented policies covering:
- Clear shutdown policy: Clearly define when shutdowns can occur, how employees will be notified, and procedures for compliance.
- Leave management procedures: Explain how annual leave and accrued leave will be handled during shutdown periods to ensure smooth operations.
- Employee agreements: For staff lacking sufficient leave, formal agreements must be in place for unpaid leave or leave in advance.
- Public holiday provisions: Provide clear guidelines on how public holidays that fall during shutdowns will be treated, ensuring full compliance with Fair Work regulations.
The Financial Reality: The True Cost of Non-Compliance
Failing to comply with Fair Work shutdown regulations can result in severe financial penalties, legal action, and reputational damage. Protect your business and employees by implementing compliant, documented shutdown policies and leave procedures.
$99,000+
Penalties per breach for businesses failing to provide proper shutdown notice or documentation.
$500,000+
Maximum penalties for serious or repeated compliance failures, potentially forcing business closure.
$99,000+
Penalties per breach for businesses failing to provide proper shutdown notice or documentation.
$500,000+
Maximum penalties for serious or repeated compliance failures, potentially forcing business closure.
Fair Work penalties reached over $473 million in 2023-24, with small businesses shouldering the majority of enforcement actions.
Common Business Mistakes That Can Cost Owners Thousands
- Relying on Verbal Communication or Emails
- Ignoring Award Rules
- Not Documenting Agreements
- Forcing Unpaid Leave Without Consent
- Overlooking Public Holidays
What About Employees Without Enough Leave?
If employees lack sufficient annual leave, you must document agreements in writing. Never force unpaid leave without consent, and consider options like leave in advance to stay Fair Work compliant.
Your Options (All Require Written Agreements):
- Agreement for the employee to take annual leave in advance (if your award permits this).
- Written agreement for unpaid leave during the shutdown period.
- Using other forms of leave (RDOs, time in lieu) if available and agreed upon.
- Paying the employee their normal wage if no agreement can be reached.
Important: You cannot force employees to take unpaid leave. Any such arrangement must be genuinely agreed to in writing, and the employee must understand they have the right to refuse.
How HR Bridge Keeps You Penalty-Free
At HR Bridge, we specialize in protecting Australian small businesses from costly compliance failures. Our Christmas shutdown service ensures you tick every box Fair Work requires.
- Draft airtight shutdown policies tailored to your business and industry.
- Issue compliant written notices to all affected employees.
- Prepare proper agreements for employees without sufficient leave.
- Review your specific award to ensure full compliance.
- Provide ongoing HR support to answer any questions that arise.
The Clock Is Ticking
If you're planning to close for Christmas, you need to act now. The 28-day notice requirement means time is running out to get your documentation in order.
Don't Risk Your Christmas Break
Every day you delay increases your compliance risk. Get your policies and notices sorted now, before it's too late to meet Fair Work's requirements.
Enjoy Christmas With Peace of Mind
You've worked hard all year. You deserve to enjoy your Christmas break without worrying about compliance disasters waiting for you in the new year.
Let HR Bridge handle the paperwork, protect your business, and give you the peace of mind you need to truly switch off this Christmas.